An executor must publish notice to creditors within one month of receiving Letters and give written notice to secured creditors within two months. The executor may also send a permissive notice to unsecured creditors, which bars any claim not presented within 121 days. Independent of these, most debts remain subject to the ordinary four-year statute of limitations.
The required notices
| Notice | Deadline | Effect |
|---|---|---|
| Published notice in a county newspaper | Within 1 month of Letters | General notice to all creditors |
| Certified mail to secured creditors | Within 2 months of Letters | Required; protects the estate and the executor |
| Permissive notice to an unsecured creditor | Executor's option, any time | Claim is barred if not presented within 121 days |
The permissive notice is the underused one. It is the mechanism that converts an open-ended exposure into a fixed deadline, and it is worth sending to every unsecured creditor whose identity is known. Our flat fee includes handling these notices.
Secured versus unsecured claims
Secured creditors — a mortgage lender, a car lender — hold collateral. Within six months of Letters, a secured creditor must elect how it wishes to be treated: as a preferred debt and lien, meaning it looks only to the collateral, or as a matured secured claim paid out of estate assets in the statutory order. The election matters a great deal to whether the family keeps the house.
Unsecured creditors — credit cards, medical bills, personal loans — have no collateral and stand in line. Their claims are frequently the ones eliminated by a permissive notice or by the estate simply having no funds after higher-priority items are paid.
The order debts get paid
When an estate cannot pay everything, Texas sets the order. Paying a lower-priority creditor ahead of a higher one can make the executor personally liable.
- Funeral expenses and last illness expenses, up to statutory limits
- Expenses of administering the estate
- Secured claims, to the extent of their collateral
- Child support arrearages
- Taxes, penalties and interest owed to the state
- Certain claims for state correctional or Medicaid-related costs
- All other claims
Family allowances and exempt property set aside for a surviving spouse and minor children come off the top and are protected from most creditors — which is why a modest estate sometimes has nothing left for unsecured claims at all.
What happens when a claim is rejected
A creditor presents its claim to the executor. If the executor rejects it, the creditor generally has 90 days to file suit or the claim is barred. If the executor neither allows nor rejects a claim within 30 days of presentment, it is treated as rejected — a trap for executors who assume silence is safe.
Independent executors have more latitude than dependent administrators, but the same core exposure: distributing estate assets while valid debts are outstanding can shift those debts onto the executor personally.
Medicaid estate recovery
If the decedent received certain long-term care benefits after age 55, the state may assert a Medicaid Estate Recovery Program claim against the estate. There are exemptions — a surviving spouse, a minor or disabled child, and a hardship waiver among them — and there are deadlines for responding to the state's notice. Tell us early if Medicaid paid for nursing home care; it changes the analysis.
Common questions
Am I personally responsible for my parent's debts?
Can creditors come after the house?
What if a creditor surfaces after the estate is closed?
This page is general information about Texas law, not legal advice, and reading it does not create an attorney-client relationship. Every estate is different. For advice about your situation, call 713-588-5914 for a free consultation.
Questions about your situation?
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